Alupar Investimento (ALUP11) Investor Day 2025 summary

Strategic vision and future growth

• Focus on expanding transmission assets across Brazil and Latin America, with 60 assets and 10,000 km of transmission lines by 2025, including major projects in Colombia, Peru, and Chile.

• New growth cycle includes R$ 7.9 billion in CAPEX and R$ 1.1 billion in RAP, with anticipated project completions through 2029 and a 13.8% RAP/CAPEX ratio.

• Recent M&A activity with the acquisition of TBO, marking the first such transaction, and continued diversification of the portfolio with increased foreign currency exposure.

• Emphasis on integrated solutions, digitalization, and development of new products and services for strategic customers from 2026 onward.

• Strong presence in university events and talent development, with 20 new interns in 2025 and 29% of hires from internal recruitment.

Financial performance and guidance

• Consistent growth in net revenue (+7.1%), net income (+8.7%), and EBITDA (+17.1%) for 9M25 compared to 9M24.

• Contracted RAP grew at a 26% annual average between 2023 and 2025, with a 60% increase per cycle.

• Portfolio diversification with a projected increase in foreign currency revenue from 4% in 2023 to 18% in 2029.

• R$ 2 billion in new funding by September 2025, with a focus on reducing debt costs and maintaining a solid capital structure.

• Dividend payments increased by 116% from 9M23 to 9M25, with a sustainable distribution policy since 2022.

Sector challenges and regulatory environment

• Sector faces challenges from aging assets, climate change, and the need for network resilience, requiring R$ 153 billion in investments by 2034.

• Regulatory adjustments focus on distributed generation, electric mobility, data centers, hydrogen plants, and energy storage systems.

• New rules for curtailment and distributed generation are being developed, with implementation expected in 2026.

• Subsidies in the electricity sector represent 16.99% of residential tariffs in 2025, with R$ 38.6 billion in total subsidies.

• The need for additional power supply starts in 2027, reaching 5,500 MW by 2028.